Hong Kong’s flexible labor laws, combined with a strong employee rights framework, make it an attractive place for hiring. Here’s what employers need to know.
1. Employment Contracts
Employment contracts in Hong Kong should clearly outline theterms of employment and comply with the Employment Ordinance. Contracts should include:
- Job title and duties
- Working hours, overtime policy, and leave entitlements
- Salary, bonuses, and payment terms
- Termination and notice requirements
- Any additional benefits or allowances
- Contracts may be in English or Chinese and should be signed by both parties.
2. Mandatory Provident Fund (MPF)
Employers must contribute to the Mandatory Provident Fund(MPF) for all employees working over 60 days. Both employers and employees contribute 5% of the employee’s monthly salary, capped at HKD 1,500 per month.
3. Working Hours and Overtime
Hong Kong does not impose statutory limits on working hours, but the Employment Ordinance mandates that employees receive 1 day of rest per week. Common practice is a 40- to 48-hour workweek. Overtime arrangements should be clearly outlined in the employment contract.
4. Leave Entitlements
Hong Kong’s Employment Ordinance provides for various leave entitlements:
- Annual Leave: Employees are entitled to 7 days of annual leave for the first year, increasing by 1 day per year of service, up to 14 days.
- Sick Leave: Employees accrue 2 paid sick days per month for the first year, capped at 120 days.
- Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave, funded by the employer.
- Paternity Leave: Male employees are entitled to 5 days of paid paternity leave.
- Statutory Holidays: Hong Kong observes 12 statutory holidays, which are paid days off.
5. Termination and Severance Pay
Termination must comply with the Employment Ordinance, and employers are generally required to provide notice, typically 1 month, unless the employment contract specifies otherwise. Severance pay applies to employees with 2 or more years of service who are dismissed due to redundancy. The
severance amount is generally calculated based on the employee’s years of service and last monthly salary.
6. Anti-Discrimination and Workplace Safety
Hong Kong has anti-discrimination laws covering race,gender, age, family status, and disability. The Occupational Safety and Health Ordinance requires employers to provide a safe work environment andtake steps to prevent workplace accidents and injuries.
7. Conclusion
Hiring employees in Hong Kong offers flexibility, but employers must adhere to labor laws, particularly in areas such as MPF contributions, leave entitlements, and anti-discrimination
practices. Following these guidelines helps build a compliant and attractive workplace.